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Government Wants to Free Tax on New Cars, Do You Agree?

Jakarta

For the sake of jacking up car sell domestically, the government through the Ministry of Industry proposed tax exemption of up to 0% for a new car. Do you agree with this discourse?

“We have proposed to the Minister of Finance to relax the new car tax by zero percent until December 2020,” said Minister of Industry, Agus Gumiwang, last week.

The tax relaxation plan is in line with the wishes of the General Association of Indonesian Automotive Industries (Gaikindo). Chairman of the Association of Indonesian Automotive Industries (Gaikindo), Yohannes Nangoi, said the automotive industry encouraged the government to provide tax relief for new cars of 0 percent, so that the price could be competitive or close to off the road prices that were not yet subject to tax burden.

For your information, motor vehicle tax (in this case a car) consists of several components. Starting from Transfer of Name (BBN), Sales Tax on Luxury Goods (PPnBM), and PKB (Motor Vehicle Tax).

“We hope that in the fourth quarter (it will take effect). It should be September, but now it’s the middle of the month, later when it comes out at the end of September the hope is that it will be October, November, December, at least (0% car tax) is already running, “said Nangoi.

This effort is expected to stimulate the market, while at the same time encouraging the growth of the automotive sector in the midst of the Coronavirus (COVID-19) pandemic.

“We want that person to increase their car buying appetite, then the car can be sold, the rotation can work, so automatically other economic sectors will also move, be it financing, insurance, spare parts, service, components, fuel sales, including toll roads, “explained Nangoi.

New car tax exemption can make prices drop to tens of millions of rupiah. This is very tempting, and it could encourage people to buy a new car. But this idea is also not without criticism, as tax exemptions for new cars could significantly increase the number of vehicles on the road, ultimately exacerbating congestion and pollution.

Do you agree with the discourse of this new car tax exemption? Write your opinion and opinion in the comments column below.

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